Updated 22 days ago on . Most recent reply
Keeping a house I bought with my ex as a rental.
Hello BP community. My girlfriend and I own a house together we bought 6 years ago. We are moving different directions in life and have mutually decided splitting up is in the best interest of both of us. We get along still but we both want different things and to move in different directions. We were going to sell the house and move on. We have a mutual friend who is a mortgage broker and he suggested if neither of us need the money right now we should put the house in an LLC and get a property management company to handle it and split it 50/50. Here is the dilemma. If we sell we will both conservatively walk with around 40k a peace possibly more but I don't see any way it would be less. I want to purchase a multifamily but after searching the market and running the numbers I don't think using that 40k as a downpayment I can find any properties that even come close to the 1% rule. More like 0.5% is what I'm finding. So heres my question BP. Am I crazy for even considering keeping the house with my ex? We'd have a lawyer write up all the contracts, put it in a LLC and have a property management company handle it. Is this a nightmare waiting to happen? After mortgage, insurance, property management company, taxes we would probably only make $200 a month total which would go into an account for repairs, improvements and vacancies. Has anyone ever done this before? Is it a really stupid idea?